The country’s rating depends on broader efforts, including continued economic reform, business environment improvements, foreign investment attraction and diversification of income sources The goal is to empower the private sector and reduce dependency on oil, focusing on industries such as financial, banking, technological services and small and medium-sized enterprises. Additionally, strict control of public finances is essential for sustainable development. Qais Al-Shatti, CEO of the Future Foresight Center for Consulting and Studies, pointed out that Kuwait’s current credit rating stands at ‘AA-’ as per Fitch Ratings. This refl ects the country’s reliance on oil and sovereign assets. Al-Shatti stressed the need to address government spending, particularly in salaries and criticized the private sector’s dependence on government tenders, likening the country’s economic model to a socialist approach. He emphasized that the solution lies in reducing state control over the economy and focusing on enhancing local investment, infrastructure and human resources, while keeping up with technological advancements.

Mohamed Ramadan, another economic expert, shared his view that raising Kuwait’s credit rating hinges on the issuance of two crucial laws: one regulating public debt and the other governing withdrawals from the Future Generations Reserve. Ramadan highlighted that raising Kuwait’s credit rating would allow the country to borrow internationally at lower interest rates, benefiting both the government and Kuwaiti banks. However, he stressed the importance of regulating withdrawals from the Future Generations Reserve, currently valued at $1 trillion. Proper management of this reserve is necessary to avoid potential risks associated with public debt. Kuwait’s credit rating is also infl uenced by its fiscal stability, as well as the diversification of its economy. Experts believe that the country’s strong general budget and liquidity position, coupled with stable macroeconomic conditions, position it well for future upgrades. However, rating agencies such as Moody’s have noted that the Kuwaiti economy remains vulnerable due to its dependence on oil. Salah Al-Jimaz, an economic expert, discussed how Kuwait’s ongoing economic reforms align with the criteria for raising its credit rating. These include financial and political stability, debt repayment history, GDP growth, business environment and investment policies. Al-Jimaz acknowledged that Kuwait has already made significant progress in these areas, particularly with the implementation of fee increases and taxes, as well as efforts to boost tourism. He noted that the success of hosting events like the Gulf Cup demonstrated Kuwait’s ability to attract tourists, further enhancing its economic outlook.

Al-Jimaz also highlighted the government’s efforts to combat corruption, citing high-profile trials of ministers and senior officials. He argued that political stability, following the dissolution of the National Assembly, would facilitate further economic progress and eventually lead to an improved credit rating. Additionally, the issue of withdrawing citizenship from fraudsters and dual nationals is seen as a positive step in reinforcing the state’s rule of law, which is crucial for boosting investor confidence. Another key area identified by experts is Kuwait’s fight against money laundering. Al-Jimaz emphasized that the government focus on anti-money laundering measures, particularly in real estate, gold sales and banking transactions, would play a critical role in raising the country’s credit rating. Digital transactions and greater oversight are expected to strengthen Kuwait’s financial integrity and attract more foreign investment. Kuwait’s path to a higher credit rating hinges on a multifaceted approach, combining fiscal discipline, legal reforms, diversification of income sources and a continued commitment to fighting corruption and money laundering. If these reforms continue at their current pace, Kuwait may soon see the fruits of its quiet but steady economic transformation refl ected in its sovereign rating.